More than £1.4 billion belonging to 728,000 people is sitting in unclaimed Child Trust Funds (CTFs), according to new figures.
The tax-free savings accounts, set up by the government for children born between 1 September 2002 and 2 January 2011, are now maturing as account holders turn 18. But many young people are unaware they even have one.
HMRC warning to parents
In a post on X (formerly Twitter), HM Revenue and Customs (HMRC) urged parents to check:
“Attention parents! If your child has recently turned 18, they may have a #ChildTrustFund, worth an average of £2,200.”
HMRC estimates that on average, accounts hold around £2,000–£2,200, thanks to government starter payments, interest, and family contributions.
Calls for automatic payouts
The Share Foundation, a charity that helps locate unclaimed funds, is urging ministers to allow automatic payouts at age 21 for accounts where no action was taken by parents to set them up.
They argue that National Insurance numbers could be used to trace young people through payslips, student loans or benefits.
How to claim a Child Trust Fund
- Use the Government Gateway service to track down accounts for free.
- The Share Foundation also runs a free service to help locate lost funds.
- Beware of companies charging fees to “find” your account — financial expert Martin Lewis has warned young people not to pay, stressing that it can be done at no cost.
What is a Child Trust Fund?
- Introduced in 2002, the scheme gave children a £250 government voucher in their first year, with another £250 at age seven.
- Children from lower-income families received £500 at each stage.
- Parents, relatives and friends could contribute additional savings.
- The scheme was scrapped in 2011 by the coalition government.
Every month, around 55,000 people turn 18 and become eligible to either withdraw their money or continue saving, HMRC said.
